KUALA LUMPUR (May 8): The Malaysian government has provided RM92 million in research and development (R&D) grants to five local companies that form the Malaysia Advanced Packaging Consortium (MAPC) to help upgrade the country’s semiconductor industry into a higher-value sector, according to the Ministry of Science, Technology and Innovation (Mosti).
The funding, channelled through the Malaysia Science Endowment (MSE) trust fund, covers a 24-month programme, Mosti said in a statement on Friday.
An additional RM93.8 million in industry matching contributions has been secured, bringing the total R&D investment to RM185.8 million, it added.
Mosti said the initiative is part of a broader effort to strengthen Malaysia’s position in high-value semiconductor manufacturing, as the country aims to capture 7% of the global advanced packaging market by 2035.
Main Market-bound SkyeChip Bhd, Inari Technology Sdn Bhd, FusionAP Sdn Bhd, Pentamaster Instrumentation Sdn Bhd and NSW Automation Sdn Bhd signed a memorandum of understanding to form MAPC at SEMICON Southeast Asia 2026, which ran from May 5 to May 7 at the Malaysia International Trade & Exhibition Centre (MITEC).
SkyeChip, a Penang-based semiconductor design firm set to debut on Bursa Malaysia’s Main Market on May 20, will lead high bandwidth memory (HBM) chip design and 2.5D/3D chiplet technology.
Inari Technology Sdn Bhd, wholly owned by Inari Amertron Bhd, is developing pilot capabilities in advanced packaging assembly.
Pentamaster Instrumentation Sdn Bhd, a subsidiary of Pentamaster Corp Bhd, is developing automated test equipment (ATE) and high-end inspection systems.
FusionAP Sdn Bhd is a startup focused on high-end intellectual property (IP) technology transfer, while NSW Automation Sdn Bhd specialises in high-precision liquid dispensing systems at sub-10 micron levels.
Mosti Minister Datuk Chang Lih Kang and Economy Minister Akmal Nasrullah Mohd Nasir, Ministry of Investment, Trade and Industry deputy minister Sim Tze Tzin and Mosti secretary general Datuk Dr K Nagulendran were in Penang on Friday, to review the progress of an Advanced Packaging Research & Development (R&D) project funded under the MSE Trust Fund programme.
Chang in the statement stressed that the success of this project is critical to achieving Malaysia’s National Semiconductor Strategy.
He said Malaysia’s 50 years of semiconductor experience and its neutral geopolitical position make it an ideal hub for investors seeking supply chain resilience outside China and Taiwan.
According to Akmal, the MSE initiative to support science, technology, and innovation through alternative funding is a clear manifestation of the effectiveness of government policy. It is part of the National Policy on Science, Technology and Innovation (2021–2030) and the 12th Malaysia Plan.
As of 31 March 2026, MSE has successfully attracted interest from 22 countries, with matching funds reaching RM227.12 million.
“Through the strengthening of R&D, automation, and local talent development, this effort not only attracts quality investments, but also ensures high-value job opportunities and sustainable economic returns for the nation.”
Malaysia is currently the world’s sixth-largest semiconductor exporter, contributing about 13% of global assembly, testing, and packaging activities. To strengthen the industry, Malaysia is aggressively shifting towards advanced packaging to avoid the “low-margin trap” caused by labour-cost competition from neighbouring countries. The advanced packaging segment offers much higher profit margins of 40% to 50%, driven largely by the global artificial intelligence (AI) boom.
The programme also serves as a platform to upskill local talent, create more high-value jobs, and bridge the gap between industry and academia through direct exposure to frontier technologies.
Source From : Govt bets on five local semiconductor companies capturing 7% of global advanced packaging market by 2035